The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-04-26
The COTTON Oil TRUST.
IFS ORIGIN, DEVELOPMENT AND
PRESENT STRENGTH.
How 1t Has Reclaimed Losing Busi.
mess and Proved Bene fetal
to the Producer.
NOT AFRAID OF THE 0PPOSI-
TON COMPANY.
Interview With Mr.. 4. T. Cha. ey,
Who is Watching the Big Suit
at New Orleans.

MIR. r. I. CLANCY, a leading membe,
OF the Amer can Cotton Oil Tlus,
Company, psssed through the city yes.
terday en- route to New Orleans. His
business is to defend the suits recently
brought against that corporation for
alleged various extortionate and lille gal
acts. Mr.. CLANCY has made a snug
fortune out OF the concern and prob.
ably knows as much Oh it's business,
origin and way OF conducting affairs
as anyone. he was seen at the Gayoso
by an APPEAL representative and
cheerfully gave all the Information
asked. Previous to launching upon
the main questions the gentleman re.
marked that the use OF cotton seed for
making food for man and beast and
fertilizers for the earth is the creation
OF great source of wealth which has,
until recent years, been almost entirely
neglected. Millions OF dollars are now
realized every year from a substance
which has heretofore run to waete,and
the industry is in its infancy.
"In whose hands is the control of all
this industry
"Mostly IN ours, and there is fear
that it's further development will be
impeded, that the planters will not
receive fair compensation for their
seed, and that the people will not de.
rive all the benefit they should from
this important product OF the soil. We
claim that We are pursuing perfectly
legitimate course, and are doing moth
ing but what any honorable business
man would do in the conduct OF his
affairs. At the same time some OF US
admit that all the tremendous power
Of the compauy's capital is ed to
drive men of moderate means from the
industry. We also admit thai, wherever
We see a section OF the country OF
which we wish to obtain control, we
propose to buy out the mills in opera
ton there, and if the owners will not
sell they will come in themselves, bid |
up the price Of seed to point where
there is no profit in the industry, and |
finally force the local manufacturers to |
sell to us or leave. The opposition man.
ufacturers claim that this is conspiracy
and tyranny OF the strong over the
weak and If there is any remedy in the
laws they will have it. 1t is not con.
spiracy, but q policy such as any
business man pursnee, using all the
advantage that his wealth and
position give him in his competition
with others. While we have encoun-
Tered a great deal Of opposition all
through the South, there has been no
successful resistance. However bitter
The owners of any mill may be, they
will not run the risk OF utter ruin in
resistance. We leave for the owner
Of mill half loaf in the shape OF q
,uperintendency Of the property un.
Ter its supervision, and pay him a
moderate price for his plant. This he
considers better than having his
works closed and his business de-
Itroyed utterly"
How marv mills and refneries ara
here in the South, and what proper.
ion OF them are under control Of the
Tiust?"
"rhere are not far from $50, OF
which about four-6fths belong to our
ON any. These mills are 10 be found
n every State where cotton ia raised,
nd some efforts have been made TO
works in the Northern States,
'ut with little success. It is not to be
Understood tbat all these mills are in
perstion. Only three OF the eeven
n New Orleans ere now open, and
here are many small ones at obscure
oints which h8vs been closed for a
oDg time. Closing mills and keep
ng down the eupply Of the products
J one Of the methods of maintaining
he price of oil. OF the eleven mills
n Memphis, five are generally said 10
'e outside the combination, but it is
nown that The Trust OWLS some OF
be- stock of these concerns, and is
raduslly acquiring more. Advantage
J taken of every little reverse in the
usiness for this purpose. A numba
( the stockholders OF the outside
nils in Memphis have recently fo'd
ut because they thought it was of no
Sc to resist"
what particular influence caused
ne organic ltion OF the Oil Trust ?"
at was organized in September,
1884. The object was to systemst zsa
usiness which had been conducted
ntirely without regard to business
1les, and which had become democrat
rcd by the reckless competition OF
nose engaged in il. The first expert.
tents in the manufacture Of cotton
il were made in 1882 or 1888, but they
esulted very enthusiastically. In 1847
frederick Good began in The business
ear New Orleans and spent $4,000.
IL he has now 10 show ior it is q
nall vial OF oil. There are men in
le business who started twenty and
lirty years ago, but they state thai
othing was accomplished till after
he war. Almost everybody who
ent into it lost money, aud, Of course, !
le war completed the ruin. After :
le armies left the field there was q ;
'vivsl OF the industry, and some
oney was made, but the methods Q
ere crude, competition for the seed
III high, and the sale of the product
as difficult, because Its value was not '
nderstood by the people. The bust.
ess had its ups and downs
Il 1882, when the best
ills, suchl as those in Mem. h
1is and New Orleans, were paying n
,od dividends and the stocks were &
ling above par. In 1883 the manu- q
cturers got into an eager competition b
! the seed, and the price was run up o
$l3, or more. This, it is claimed, 81
as So more than the mills could pay d
I'd get any profit out OF the m anufact- q
70. In 1883 the millers got together, [
vided up the territory producing a
ed, agreed to pay a uniform price Of
0 per ton, and generally adopted a n
,licy OF harmony. This arrangement y
'opped to pieces in 1884, the stocks 9
the milling companies fell to very ..
W prices and the opportunity OF the K
rust was at hand. The strongest men a.
the business, such as Jules Aldige, "
New Orleans, and ]. V. Lewis, OF q
Incinnati, undertook the work of or. y
IMITATION. StocFa of tho copnnaniaa d